8-KLeadership ChangesExhibits & Filings

STARBUCKS CORP 8-K Report, Executive Changes (Dec 4, 2009)

Filed December 4, 2009For Securities:SBUX

Summary

This 8-K filing from Starbucks Corporation (SBUX), filed on December 4, 2009, primarily announces the departure of Martin Coles, former president of Starbucks Coffee International, effective immediately as of December 1, 2009. The company also disclosed the terms of his separation agreement. For investors, the key takeaway is the management change within a significant international division. While the filing doesn't provide forward-looking financial guidance, it details the compensation and benefits Mr. Coles will receive, including a lump sum payment equivalent to twelve months of his base salary and COBRA coverage, along with outplacement services. Mr. Coles also provided a general release of claims and reaffirmed his confidentiality and non-competition obligations.

Key Highlights

  • 1Martin Coles, former president of Starbucks Coffee International, has departed the company, effective immediately as of December 1, 2009.
  • 2The departure was announced via a press release dated December 1, 2009, which is attached as an exhibit.
  • 3Starbucks entered into a Separation Agreement and Release with Martin Coles on November 30, 2009.
  • 4Under the agreement, Mr. Coles will receive a payment equal to 12 months of his base salary, subject to customary withholdings.
  • 5The company will also provide Mr. Coles with 12 months of COBRA continuation coverage and up to $14,000 for outplacement services.
  • 6Mr. Coles' vested stock options will expire or be exercisable according to existing plan terms.
  • 7Mr. Coles has provided a general release of claims against Starbucks and reaffirmed his confidentiality and non-competition obligations.

Frequently Asked Questions

Martin Coles was the former president of Starbucks Coffee International, a significant international division for the company.

The direct financial implications are the separation package for Mr. Coles, which includes 12 months of his base salary, 12 months of COBRA coverage, and up to $14,000 in outplacement services. The filing does not indicate any further financial liabilities beyond this agreement.

The departure of a key executive can sometimes influence investor sentiment. However, this filing focuses on the separation terms and does not provide operational or financial performance details that would directly impact stock valuation in the short term. Investors should consider this as a management change within an international segment.

Mr. Coles has provided a general release of claims against Starbucks, agreed to confidentiality obligations, and reaffirmed his obligations under a non-competition agreement with the Company.